Cartel
Definition
A cartel refers to a group of businesses or organizations that work together to control the production, pricing, and distribution of a particular product or service.
Analogy
Imagine a group of friends who all have lemonade stands in the same neighborhood. Instead of competing against each other, they decide to form a cartel and agree on the price and quantity of lemonade they will sell. This way, they can maximize their profits by working together.
Related terms
Monopolio: A monopoly occurs when one company has complete control over the market for a specific product or service.
Competencia: Competition refers to the rivalry between businesses or organizations that offer similar products or services.
Oligopolio: An oligopoly is a market structure where only a few large companies dominate the industry and have significant influence over prices and competition.
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